Volume : II, Issue : VI, June - 2013

Supplier Selection Using AHP and Promethee–2

Bhavesh Kumar Shakey

Abstract :

Supplier selection is one of the most critical activities of purchasing management in supply chain. Supplier selection is a complex problem involving qualitative and quantities multi-criteria. A tradeoff between these tangible and in tangible factors is essential in selecting the best supplier. The work incorporates PROMETHEE-2 and AHP in choosing the best suppliers. the result suggest that AHP and PROMETHEE-2 process makes it possible to introduce the optimum order quantities among the selected supplier so that the total value of purchasing becomes maximum. In the present study an efficient multi criteria decision making (MCDM) approach has been proposed for quality evaluation and performance appraisal in supplier selection. Supplier selection is a multi criteria decision making (MCDM) problem influenced by multiple performance criteria/ attributes. These criteria attributes may be both qualitative as well as quantities. Qualitative criteria estimates are generally based on previous experience and expert opinion on a suitable conversion scale (11 point fuzzy scale).this conversion is based on human judgment; therefore, predicted result may not be accurate always because the method doesn’t explore real data. In solution of MCDM problems there should be common trend is to convert quantitative criteria values in to an equivlant single performance index called multi attribute performance index (MPI). Benchmarking and selection of the best supplier can be made in accordance with the MPI values of all alternative. This study highlights application of PROMETHEE-2 and AHP adapted from MCDM for utilizing quantitative real performance estimate scores. Detail methodology of PROMETHEE-2 and AHP has been illustrated in this reporting through a case study.

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Article: Download PDF   DOI : 10.36106/ijsr  

Cite This Article:

Bhavesh Kumar Shakey Supplier Selection Using AHP and Promethee-2 International Journal of Scientific Research, Vol : 2, Issue : 6 June 2013

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